Market Open: More profit taking to drag Hang Seng down
Hong Kong stocks may be hit by increased selling, and may also come under short-term pressure from share placements and rights issues, with investors likely to lock in profits because they remain worried about the strength of the US economic recovery and expect few real policy initiatives from China before the Nationa People’s Congress in March.
In Hong Kong, official data figures show that the city’s renminbi deposit rose 5.6 per cent to 603 billion yuan. Mainland news overnight said the city of Wenzhou and Qianhai are competing for Beijing’s approval to become the first trial city for the QDII2 scheme, which allows mainland investors to invest in the Hong Kong market directly.
As for the secondary offering, China Investment Fund (0612.HK) said it has cancelled a planned placement, blaming recent market weakness.
As for earnings, Combest Holdings (8190.HK) said it turned a net profit of HK$14.53 million in the six months to December 31, up from a net loss of HK$4.73 million loss a year earlier.